BEIJING, China has left electric vehicles (EVs) out of its list of strategic industries in the upcoming 15th five-year plan (2026–2030) — the first time in over a decade — as the country contends with mounting oversupply and intense competition in the sector.
New energy vehicles (NEVs), which include EVs, plug-in hybrids and fuel cell cars, were previously designated as strategic emerging industries across the last three five-year plans, a move that helped cement China’s global dominance in EV production and technology through massive state subsidies and local government incentives.
However, the latest plan, announced by state news agency Xinhua on Tuesday, shifts the government’s focus toward emerging fields such as quantum technology, bio-manufacturing, hydrogen energy and nuclear fusion — notably omitting NEVs from the list of priority sectors.
While automobiles were briefly mentioned alongside housing, the government’s emphasis was on stimulating consumption by easing purchase restrictions rather than promoting industrial expansion. The full plan is expected to be officially approved at the National People’s Congress in March next year.
China’s auto industry — the world’s largest — has been grappling with chronic overcapacity, a fierce price war and relentless competition among dozens of domestic EV makers. The saturation has prompted growing concern within Beijing over resource misallocation and unsustainable investment.
Commenting on the plan, President Xi Jinping cautioned against “blind expansion” into trendy sectors, stressing the need for a more measured and coordinated approach to technological and industrial development. Earlier this year, Xi also questioned whether every province needed to pursue investments in sectors like artificial intelligence, computing power and EVs.
Since launching its EV push in 2009, China has transformed cities such as Hefei and Xi’an into manufacturing hubs. Yet, with a glut in the domestic market and rising trade frictions threatening exports, the government appears to be recalibrating its priorities toward new frontiers of scientific innovation and energy technologies.
